Environmentally Friendly Environmentally Friendly Drilling Project Drilling Project --

Determining Determining Environmental TradeoffsEnvironmental Tradeoffs

Richard C. Haut, Ph.D., Houston Advanced Research CenterDavid Burnett, Global Petroleum Research Institute, Texas A&M University

Tom Williams, TerraPlatforms, LLC.

IOGCC Annual MeetingNovember 16-18 2008

What will be PresentedWhat will be Presented

Environmentally Friendly Environmentally Friendly Drilling Systems ProgramDrilling Systems Program

Access to Environmentally Sensitive Areas– How to access with minimal impact– How to measure effect of low-impact practices

Source: William Harrison, Kansas Geological Survey

Program Goal is less than

one acre

EFD Program EFD Program -- HistoryHistory

• Formed Team in 2005

• Obtained U.S. Department of Energy Funding

• Formed Joint Industry Partnership

• Phase 1 ended 3Q 2008, Phase 2 will be a 3 year project,

kickoff 4Q 2008

• Identification and Demonstration of low impact

technologies to minimize environmental impact

Identify and develop technologies to get access with minimal impact.

Determine how to measure the tradeoffs of low impact practices.

The Reality is that All Areas are The Reality is that All Areas are Environmentally SensitiveEnvironmentally Sensitive

• The value of protecting the environment is becoming more important and it makes good business sense

• The public’s interest in energy development is becoming more and more significant.

• The O&G Industry must engage the public in a more significant way.

Systems Approach to Technology SelectionSystems Approach to Technology SelectionTo select the optimal system (combination of technologies)

to minimize impact and maximize profit

Environmentally Friendly Onshore Oil and Gas Drilling System

SYSTEM

Access RoadAccess Road

PlatformPlatform

RigRig

DrillingDrilling

Environmental/SafetyEnvironmental/Safety

SUBSYSTEMS

(3) Rig type(4) Conventional power(5) Fuel type(6) Unconventional power(7) Energy storage

(3) Rig type(4) Conventional power(5) Fuel type(6) Unconventional power(7) Energy storage

(8) Drilling fluid type(9) Drilling fluid and waste

management(10) Well construction

(8) Drilling fluid type(9) Drilling fluid and waste

management(10) Well construction

(11) Air emissions(12) Environmental

Scorcard Monitoring

(11) Air emissions(12) Environmental

Scorcard Monitoring(2) Platform(2) Platform(1) Access road(1) Access roadSUBSETS

TECHNOLOGIES(100 total)

Environmentally Friendly Environmentally Friendly Drilling Systems ProgramDrilling Systems Program

Advisory Council (list not complete)Texas A&M Petroleum EngineeringHouston Advanced Research CenterTerraPlatform, LLCAnadarko PetroleumBPChevronConocoPhillipsDevonShellStatoilHydroNational Oil WellMI SwacoHalliburtonHuisman

Phase IIdentify challenges, Engineering Design Systems.

NOV Rapid Rig

8

New Rigs Shrink New Rigs Shrink the Physical Footprintthe Physical Footprint

Rig Manufacturer

Foot Print Area Depth Rating

Sq Ft acres HP Drill Pipe CasingHuisman 7500 0.17 1000 11,500 18,000Rapid Rig 10,290 0.24 1000 11,000 15,000Ideal Rig 39,474 0.9 1500 18,000H&P 36,200 0.83 1500 18,000DrillMec 6375 0.15 1500 <11,000

NOV Rapid Rig

Huisman LOC 250

Initial Plans for Next StagesInitial Plans for Next Stages

• Hold workshops to identify technologies and measurements

Technologies that reduce environmental impactEnvironmental indicators for wetland biodiversity: what can/should be measured

• Develop Conceptual Design/Plans

Reducing our Footprint Reducing our Footprint Identifying new technologies, best Identifying new technologies, best

practices and opportunitiespractices and opportunities

rigs, roads, excessive equipment, drilling innovations and people + emissions + waste

management + safety

Roads Have Significant ImpactRoads Have Significant Impact

Impact of Oil and Gas Development

Exploration and Production in Environmentally Exploration and Production in Environmentally Sensitive Arctic AreasSensitive Arctic Areas

Collaborative effort designed to reduce environmental concerns for ecologically sensitive areas currently open for development.

Objective:Identify access barriers and other issues

concerning Arctic resources

Prototype Inland Platform

Durabase (mat) Road Construction

Small Modular Rig Prototype Inland Platform being Installed

Protect Sensitive EcologiesProtect Sensitive EcologiesCryptobiotic soils in semi arid area– Found in similar types of environments around the world – Very sensitive and have little mechanical strength – Challenge is to drill and exploit without significant damage – Cryptobiotic soils are the essential

first step in producing arable soils

Filaments of Microcoleus vaginatus (x 3000), the dominant organism in the crust. Individual cells abut each other to form the filaments.

Membrane BioReactor Desalination Unit

Concentratedeffluent brine

Fresh waterReserve pit & other wastes

BioremediationBioremediation

Fresh

water

There is Only One BusThere is Only One Bus

and we are all on itGrowing tension between energy needs and biodiversity values

Challenge to energy companies

Challenge to conservation organizations

TradeoffsTradeoffs

HumanHumanCultureCulture

All LivingAll LivingSystemsSystems

Energy ProductionOil and Gas Operations

Upstream Downstream

Field Development

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Dril

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Measuring TradeoffsMeasuring Tradeoffs

• Develop a methodology for each ecosystem that can be used to assess tradeoffs associated with the application of new technologies to secure energy.

• Vision is to deliver a methodology that considers:

– Biodiversity– Waste Management– Air– Water– Site– Societal/Human Health Issues

Potential ScorecardPotential Scorecard

ConceptsConcepts

Potential ScorecardPotential Scorecard

ConceptConcept

Stakeholders are all those who are affected, interested in or have the capacity to influence a project.

Stakeholder Engagement is Important!Stakeholder Engagement is Important!

Source: Connor Development Services Ltd

Energy ProductionOil and Gas Operations

Upstream Downstream

Field Development

Expl

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Dril

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Com

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Proc

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Focus Scorecard on OperationFocus Scorecard on Operation

Concept Concept –– USGBCUSGBCLEED ProgramLEED Program

Tradeoff Scorecard DevelopmentTradeoff Scorecard Development

Scorecard objective is to Scorecard objective is to impact accessimpact access

Assure Public and Government that the industry is (in fact) operating in an environmentally responsible manner, without adding a costly new government programSupport Federal and State regulatory bodiesOperators and regulators have access to best available practicesIdentify areas that could benefit from EFD advances and new R&D

Outreach and Technology Outreach and Technology Transfer Transfer

• Following the direction of JIP sponsors and stakeholders

• Open Communication – RPSEA environmental forums– Conferences – PTTC– Bringing Parties together– Special Studies

• Addressing public perception

What to RememberWhat to Rememberwww.efdsystems.comwww.efdsystems.com